Synopsis The commerce ministry discussed formulating SOPs for negotiating FTAs during a Chintan Shivir, engaging with trade partners like the UK, EU, Peru, Australia, and the Eurasian Economic Union. The discussions included India's trade strategy, vision 2047, and new disciplines like labour and environment. The commerce ministry has held detailed discussions with senior officials of different departments and trade experts on formulating standard operating procedures (SOP) for negotiating free trade agreements (FTAs), an official said. To discuss the various aspects of these agreements, the commerce ministry has organised a two-day 'Chintan Shivir' on FTA strategy and SOPs for trade negotiations on May 16-17. Suggestions that came up during the discussions included comprehensive consultations with public and private sector players and sharing details of the proposed FTAs with the line ministries, the official said. "Consultations should be held at every stage of FTA negotiations. Representatives of certain ministries suggested the commerce ministry to share FTA details with them in a timely manner so that they can prepare their views on those agreements," the official added. The exercise assumes significance as India is engaging with several trade partners to negotiate free trade pacts. Former commerce secretaries, trade experts and government officials from ministries, including finance, IT and electronics, and mines, participated in the deliberation. In the Chintan Shivir, various issues were discussed, including India's trade strategy and vision 2047; economic assessment and modelling of FTAs; inclusion of new disciplines into FTAs such as labour, environment, gender, and indigenous people; services and digital trade; and SOPs for FTA negotiations. A separate session was also organised on leveraging India's FTAs to address new forms/kinds of measures like CBAM (carbon border adjustment mechanism), supply chain disruptions, critical minerals, and artificial intelligence. India is negotiating trade pacts with the UK, the EU (European Union), Peru, and a comprehensive trade deal with Australia. It is also in talks with the Eurasian Economic Union for a trade agreement. India's goods and services exports in 2023-24 reached an all-time high of USD 778.2 billion, up 0.23 per cent from USD 776.4 billion in 2022-23. The country has inked trade pacts with Mauritius, the UAE, Australia and the European Free Trade Association (EFTA) since 2021.
Source: The Economic Times
Coimbatore: The textile industry in the region on Thursday hailed the Union Budget 2018 presented by finance minister Arun Jaitley. Tirupur Exporters Association president Raja M. Shanmugham welcomed the announcement of allocation of Rs7,148 crore for textile sector of which Rs2,300 crore has been allotted to Amended Technology Upgradation Fund Scheme and Rs2,164 Crore for Remission of State Levies. In a statement, he also welcomed the extension of corporate tax at 25% to the companies turnover up to Rs250 crore in the financial year 2016-17 which is beneficial particularly to the medium enterprises. He lauded the announcement on launching of flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families providing coverage up to Rs5 lakh per family per year for secondary and tertiary care hospitalization and added this will be beneficial to the employees in Tirupur cluster also. In a separate statement, Southern India Mills Association chairman P. Nataraj also welcomed the increased allocation of Rs7,148 crores. Extending 12% EPF employer’s contribution for the first three years of employment and also the fixed term employment for all the sectors of the industry would encourage job creation in the textile industry, he pointed out.
Source: Mint
The one-time amnesty scheme for exporters who failed to meet obligations that they had agreed upon while availing duty-free imports of inputs and machinery for production has netted the government Rs 852 crore, a senior official has said. As many as 6,705 applications were filed by the exporters to take advantage of the scheme, which enabled them to reduce their paybacks to the government for not meeting export obligations under the Advanced Authorisation (AA) and Export Promotion Capital Goods (EPCG) schemes. Officials said the money collected under the scheme could go up further. In the normal course, if an exporter fails to meet the export obligations, the duty saved has to be paid back to the government. If repayment exceeds the time limit prescribed under the schemes, interest is also charged. In the amnesty scheme announced in the Foreign Trade Policy released on March 31 last year, the interest was capped at 100% of exempted duties under the scheme. However, no interest was payable on the portion of Additional Customs Duty and Special Additional Customs Duty. This brought down the interest burden on exporters, as many cases of non-fulfillment of export obligations have been pending for a long time. By November 30, exporters had to file that they will participate in amnesty scheme and the deadline of payment of customs duty and interest was March 31. The last amnesty scheme for exporters was announced back in 2011-12.
Source: Financial express
Weavers in the district could benefit by joining the Mini Textile Park scheme, as it would give them a better chance to streamline production and share facilities, industry players have said. Efforts are believed to be on to expedite the establishment of clusters in Tiruchic in order to give a boost to the textile sector. “Small firms that are interested in joining will profit by sharing production facilities, which otherwise require outsourcing. A minimum of three companies can form a cluster. This will help to create a textile hub in the district,” said a senior official of the Department of Handlooms and Textiles, Tiruchi. Under the scheme, entrepreneurs will be offered financial assistance of up to ₹2.5 crore. Initiatives like the Mini Textile Park could make disparate units such as the handloom weavers of the district, profitable by unifying their operations, said observers, who are expecting the scheme to be introduced shortly in Tiruchi. “This would be a good opportunity for textile production to develop in Tiruchic because it integrates newer concepts like effluent treatment facilities. As has been seen in the case of older manufacturing cities like Tiruppur, Coimbatore and Erode, the textile industry has been a major cause of environmental pollution. With proper monitoring built into the Mini Textile Park scheme, the sector could succeed in Tiruchi,” P. Rajappa, president, Tiruchi District Tiny and Small-Scale Industries Association (TIDTTSSIA), told The Hindu. Mr. Rajappa, however, cautioned that many potential participants may be unable to fulfill the condition of procuring two acres of land to join the scheme. “Since Tiruchi is known for its small fabrication units, a similar promotion may help local manufacturers to pool their resources and make the region an engineering production hub,” he said.
Source: The Hindu
Though the Red Sea crisis has led to a rise in voyage span by 15-20 days and higher freight rates, capacity liners' readiness to expand container capacity—owing to healthy profitability by chartering additional vessels, cascading capacity from other regions, and accelerating fleet renewal—bodes well for mitigating the increased transit times of Indian container cargo, according to Care Edge Ratings. The impact on cargo will primarily affect food grains and other perishable items, along with freight-sensitive or low-value cargo, which is estimated at 10-15 per cent of container volumes. Therefore, the rating agency expects container volume in India to grow by 8 per cent at 342 million metric tonne (MMT) in FY25, amid the risk of a prolonged Red Sea crisis, it said in a recent report. Going forward, significant adverse movement in charter rates impacting cargo volumes and vessels addition by shipping lines shall be worth monitoring, it said in a release. India’s maritime sector is represented by the 12 major ports and more than 200 non-major ports along the 7,500 km of coastal line. Overall, cargo throughput at Indian ports is at its all-time peak at 1539 MMT for fiscal 2023-24 (FY24), reflecting close to 7 per cent growth over FY23. Cargo throughput between FY21 and FY24 was also healthy, marked by a compounded annual growth rate (CAGR) of 7 per cent. Resilient economic activity, increasing demand and consumption of major commodities, declining shipping freights and traffic recovery after the pandemic were the prominent growth drivers. Cargo at Indian ports is dominated by crude oil, coal and containers. These three comprise three-quarters of the total cargo throughput handled by Indian ports. CareEdge Ratings expects coal cargo throughput to grow at a CAGR of 3-4 per cent between FY24 and FY26, as the share of coastal cargo is expected to rise from 33 per cent in FY24 to 42 per cent by FY26.
Source: Fibre2fashion
India, U.K. reaffirm FTA commitment at Strategic Dialogue India and Britain have reaffirmed their commitment to conclude a mutually beneficial free trade agreement (FTA) at the annual U.K.-India Strategic Dialogue in London, as the two sides reflected the "good progress" on the 2030 Roadmap since the last review. Foreign Secretary Vinay Kwatra, who is on a visit to the U.K., held discussions with his counterpart, Sir Philip Barton, Permanent Under-Secretary at the Foreign, Commonwealth and Development Office (FCDO) on Friday. After their meeting, the FCDO said the two leaders reviewed the progress made on the U.K.-India 2030 Roadmap since the last strategic dialogue in January last year and looked ahead to the next phase of bilateral cooperation. “The two reflected on good progress on the 2030 Roadmap since the last review, noting key areas where the UK and India have worked together to tackle some of the world’s biggest challenges,” the FCDO said in a statement. “This included collaborating on the world’s first malaria vaccine, working closely on India’s successful G20 Presidency and increasing opportunities for students and entrepreneurs under the Migration and Mobility Partnership," the statement said. "Alongside celebrating the milestones since the last review, this year’s dialogue included the ongoing commitment to negotiate a mutually beneficial free trade agreement (FTA) and enhance defence cooperation,” it added. Earlier, the High Commission of India in London said Mr. Kwatra also had a “fruitful meeting” with U.K. Minister of State for Defence Procurement James Cartlidge, during which they discussed ongoing India-U.K. defence capability cooperation initiatives and avenues for future collaboration. “We are delighted to host Indian Foreign Secretary Kwatra in London to underline the UK’s commitment to deepening cooperation with India," said Lord Tariq Ahmad, FCDO Minister for South Asia, after his meeting with the Foreign Secretary, which his office said covered the FTA, migration and the Commonwealth. "I look forward to our relationship going from strength to strength, working together on trade, defence, climate, and health,” he added. The 2030 Roadmap was clinched between India and the U.K. in 2021 and includes commitments to deepen cooperation on health, climate, trade, education, science and technology, and defence by 2030. India and the U.K. have held 13 rounds of talks on the FTA. The 14th round started in January. There are 26 chapters in the agreement, including goods, services, investments, and intellectual property rights. The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty. On the other hand, the U.K. is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates, and certain confectionary items. Britain is also looking for more opportunities for U.K. services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance). The bilateral trade between India and the U.K. increased to $20.36 billion in 2022-23 from $17.5 billion in 2021-22.
Source: The Hindu
The government’s cash incentive programme for export receipts has surged over the years, yet many sectors have struggled to make a significant impact in the global market. Reports underlined this adding, this has limited the success of the government’s diversification initiative while highlighting currently, 43 sectors receive taxpayer-funded cash support, with rates ranging from 0.5 per cent to 15 per cent. Among these, only the garment sector has consistently excelled, establishing Bangladesh as the world’s second-largest apparel supplier. The sector accounts for approximately 85 per cent of the country’s exports even as over the years, the government has spent thousands of crores of taka to help exporters become competitive in international trade. However, this support must end after 2026, as World Trade Organization (WTO) rules prohibit developing and developed countries from providing direct cash incentives to the exporters and with Bangladesh set to become a developing country in November 2026, the government has already begun reducing subsidies for almost all sectors even as it aims to gradually phase out the rates and protect exporters from the shock of a sudden withdrawal of cash aid.
The highest cash incentive rate has been reduced from 20 per cent to 15 per cent for most sectors. Only four sectors—diversified jute products, vegetables, fruits and products in the agro-processing sector, potatoes, and halal meat and processed meat exporters—will qualify for the top rate. Despite the potential and direct cash assistance, sectors like jute, leather, agro-processing, and frozen foods have not matched the garment sector’s success. Even within the garment sector, results are mixed, with a strong focus on cotton-based garments, despite the global shift towards non-cotton items which fetch better prices. Meanwhile, Zahid Hussain, a former lead economist of the World Bank, suggested reconsidering the current incentive strategy, as many sectors failed to produce positive outcomes despite the financial support even as he noted that the lack of diversification in exports, except for garments, highlights the inefficacy of the current approach and hinted at corruption in the management of cash incentives. He recommended reassessing the eligibility of sectors for incentives post-LDC graduation while SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), advocated for the continuation of incentives after the LDC graduation. He pointed out that countries like India and China offer similar incentives under different names, such as technology upgradation or skills development funds while emphasising that numerous small and medium enterprises in Bangladesh need financial support to face post-LDC challenges, especially with rising business costs due to power tariff hikes.
Source: Fibre2fashion
The EEA briefing ‘Management of used and waste textiles in Europe’s circular economy’ shows the current state of textile waste generation, collection systems, treatment capacity and the different classifications for used textiles in Europe. According to the EEA estimate, around 16 kg of textile waste per person was generated in the EU in 2020. Only about one quarter of this amount (4.4 kg) was collected separately for reuse and recycling, but the rest ended up in mixed household waste. Of all textile waste, 82% came from consumers and the rest was waste from manufacturing or textiles that were never sold. The EU Waste Framework Directive (WFD) mandates Member States to have separate collection systems for used textiles from next year. The European Commission has also proposed a targeted revision of the WFD to introduce mandatory Extender Producer Responsibility for textiles in all Member States to make producers responsible for the full life cycle of textile products, from their design to waste management. The Commission proposal is also introducing separate collection rules for textiles and sorting requirements for used textiles shipment. According to a survey conducted by the EEA in 2023, most EU Member States already had separate collection systems in place but mostly to capture reusable textiles. The EEA report warns that, besides separate collection, sorting and recycling capacities need to be scaled up in Europe to avoid that collected textiles end up in incinerators, landfills, or are exported to regions outside the EU. There is also a need to harmonise definitions and reporting practices on used and waste textiles. This is also clearly shown in the data collected by the EEA that shows wide discrepancies due to the differing interpretations of what constitutes waste and what constitutes used textiles. The EEA has previously published several assessments addressing textiles in Europe’s circular economy, including on the destruction of returned and unsold textiles, textiles and the environment, design for circularity, microplastic from textiles consumption, exports of used textiles, and bio-based textiles.
Source: European Environment Agency
CAIRO - An initiative to foster circular economy practices within Egypt's textile and garment industries has completed after five years in which the organisers claim to have achieved progress. The SwitchMed III initiative was funded by the European Union (EU) and implemented by the United Nations Industrial Development Organization (UNIDO) in eight Southern Mediterranean countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestine and Tunisia.
Source: Eco Textiles
Indonesia has relaxed import rules for electronic products, footwear, and textiles, its chief economic minister said on Friday, in an attempt to quickly process imported items that have piled up in ports. Jakarta in March tightened import rules impacting more than 3,000 goods, aiming to protect domestic industries from an influx of products, including by requiring importers to obtain a permit and a recommendation. In April, further regulations to restrict imports of electronic goods including air conditioners, refrigerators and laptops were announced. Since then, more than 26,000 of containers have been stuck at the country's two biggest sea ports due to bureaucratic hurdles, the government said. They contain a range of goods, including steel, clothes, electronics and chemical products. The government has decided to revert to previous rules to clear the backlog of containers at the ports, effective immediately, Airlangga Hartarto, chief economic minister, said in a press conference. Steel imports will still require a permit and a recommendation, but the government promised to expedite the process, Airlangga added. The regulation detailing the relaxation is not yet publicly available.The government in April had already removed restrictions for a number of items used as raw materials by industries after complaints by the Indonesian chamber of commerce and industry.
Source: Indian Express
